Financed ProjectsDTEK

Identification Code:

OP/13/0031

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

Provision of a term debt facility to DTEK Group for the purpose of the financing (directly or indirectly) of investment programs on the reconstruction, upgrade and improvement of operational capacity and functions of the electricity distribution facilities of the Group in Ukraine. The loan proceeds shall be used for the financing of or the coverage of costs related to rehabilitation, upgrade and improvement of several regional electricity distribution companies to bring them to more effective and efficient operational standards, thus improving the reliability of the electricity supplies and therefore contributing to the improve of the overall operational profile of the Group.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Energy

Domain:

Private

Borrower/Client:

DTEK Group

Co-Financiers/Participants:

Guarantors/Sponsors:

DTEK Group

Developmental and Regional Cooperation Impact:

The Operation will finance the rehabilitation and upgrade of the assets of electricity distribution companies of the Group. Such electricity distribution facilities constitute vital and important part of the national energy and electricity supply infrastructure. In addition as the result of the implementation of such a Capex program, there is expectation of creation of new jobs and increase of tax payments to the state and municipal budgets. The Operation involves ongoing export of the Group’s output to other BSTDB member counties, in particular electrical energy has been exported to Moldova and Romania and coal has been exported to Turkey.

Environmental Classification and Impact (summary):

Category B Operation. The associated EHS risks and impacts are diverse, but generally limited and well understood, and can be readily identified and mitigated through recognized good practices applied by the power distribution industry. The Bank's Environmental Assessment focused among others on the following key issues: i) Existing corporate environmental and social management systems; ii) Compliance with national EHS legal and regulatory requirements; iii) Past contamination of soil and ground waters with transformer oil, including oils containing PCBs and potential liabilities related to site clean-up and remediation; and iv) Existing PCB containing equipment and plans for their decommissioning and disposal. All the existing EHS risks and impacts, or any potential future liabilities associated with power distribution system of DTEK will be further mitigated through an Environmental and Social Action Plan (ESAP) which will be developed for this purpose by DTEK in close collaboration with BSTDB. This will include actions related to improving environmental and health and safety management system; measures to improve management of hazardous wastes, including phasing out of PCB containing equipment; emergency response and planning; and workers health and safety. Upon implementation the Operation is likely to result in positive impacts as the rehabilitation and upgrade of the Group's power distribution facilities will improve its general EHS performance, as well as increase energy efficiency by minimizing electricity losses in the network.

Operation Leader:

Energy & Infrastructure

E-mail:

ei@bstdb.org